Federal Communications Commission	DA 20-688


DA 20-688
Released:  June 30, 2020

WIRELINE COMPETITION BUREAU ANNOUNCES THE AVAILABILITY 
OF UNUSED FUNDS TO INCREASE RURAL HEALTH CARE PROGRAM 
FUNDING FOR FUNDING YEAR 2020   
WC Docket No. 02-60
In June 2018, the Commission adopted rules to address increasing demand in the Rural Health Care (RHC) Program. Promoting Telehealth In Rural America, WC Docket No. 17-310, Report and Order, 33 FCC Rcd 6574 (2018) (RHC Program Funding Cap Order).
  Specifically, the Commission: (1) increased the annual RHC Program funding cap; See id. at 6578-82, paras. 10-19; see also 47 CFR § 54.619(a).
 (2) provided for the annual RHC Program funding cap to be adjusted for inflation; See RHC Program Funding Cap Order, 33 FCC Rcd at 6582-84, paras. 20-23; see also 47 CFR § 54.619(a)(1)-(2).
 and (3) established a process to carry-forward unused funds from past funding years for use in future funding years. See RHC Program Funding Cap Order, 33 FCC Rcd at 6584-85, paras. 24-28; see also 47 CFR § 54.619(a)(4)-(5). 
  The Commission also directed the Wireline Competition Bureau (Bureau) to announce a specific amount of unused funds from prior funding years to be carried forward to increase available funding for future funding years. 2018 RHC Program Funding Cap Order, 33 FCC Rcd at 6584-85, para. 27 (“The Bureau will announce the availability and amount of carryover funds during the second quarter of the calendar year.”); 47 CFR § 54.619(a)(5).   
  In August 2019, the Commission clarified that the Bureau must determine the proportion of unused funding available in consultation with the Office of the Managing Director. Promoting Telehealth in Rural America, WC Docket 17-310, Report and Order, 34 FCC Rcd 7335, 7402, para. 142 (2019); 47 CFR § 54.619(a)(5).   
  
USAC projects that, as of the third quarter of this calendar year, $197.98 million in unused funds is available for use in future funding years beginning in funding year 2020. See USAC, Federal Universal Service Support Mechanisms Fund Size Projections for Third Quarter 2020 (May 1, 2020), https://www.usac.org/wp-content/uploads/about/documents/fcc-filings/2020/third-quarter/financials/USAC-3Q2020-Federal-Universal-Service-Mechanism-Quarterly-Demand-Filing_Final.pdf (last visited June 30, 2020), at 25.  The amount of unused funding may fluctuate slightly due to the resolution of pending funding requests and appeals.  If the actual amount of unused funds is lower than the estimated amount, USAC is directed to carry forward the lower amount.
  Pursuant to the Commission’s direction and section 54.619(a)(4)-(5) of the Commission’s rules, the Bureau, in consultation with the Office of the Managing Director, directs USAC to carry forward up to $197.98 million in unused funds from prior funding years to the extent necessary to satisfy funding year 2020 RHC Program demand as of the close of the funding year 2020 application filing window on June 30, 2020. 47 CFR § 54.619(a)(4)-(5).  The funding year 2020 application filing window was extended to June 30, 2020 to minimize the disruptions caused by the COVID-19 pandemic. See Rural Health Care Support Mechanism, WC Docket No. 02-60, Order, 35 FCC Rcd 2922, 2924, para. 6 (2020). 
  
The RHC Program funding cap for funding year 2020 is $604,759,306. Wireline Competition Bureau Announces E-Rate and RHC Programs’ Inflation-Based Caps for Funding Year 2020, CC Docket No. 02-6, WC Docket No. 02-60, Public Notice, 35 FCC Rcd 2062, 2063 (WCB 2020).  The 2020 funding year runs from July 1, 2020 to June 30, 2021.
  The cap for upfront payments and multi-year commitments under the Healthcare Connect Fund Program is $152,700,000. Id.
  These funding year 2020 caps represent a 1.8% inflation-adjusted increase to the RHC Program funding cap and the cap on multi-year commitments and upfront payments from funding year 2019. Id.

For further information, please contact Bryan P. Boyle, Wireline Competition Bureau at (202) 418-7924 or via email at Bryan.Boyle@fcc.gov. 
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